Changes are coming into force next month which anyone looking to make a claim for damages will need to be aware of.

What Are Fixed Recoverable Costs?

Fixed recoverable costs (FRC) is the money which can be recovered by the winning party in a dispute (litigation) to cover some or all of the fees that party have paid for their legal representation.

These costs are not based on the amount of work done by that party’s lawyer or the fees charged; they’re a set amount depending on which stage of litigation the case reached. For example, pre-issue or final trial.

Currently, only cases with damages less than £10,000 and low-value personal injury cases are subject to FRC but this is set to change. From 1st October 2023, the threshold will increase to cases with damages worth up to £100,000, with only limited exceptions.

These new rules apply to professional negligence claims, contract disputes, property disputes, personal injury claims, clinical negligence claims and defended debt claims.

What Does This Mean for My Case?

The new changes aim to provide more clarity for clients with claims worth between £10,000 and £100,000. Clients will be aware at the outset of the exposure to the opponent’s costs, if unsuccessful. For winning parties, it will allow them to understand the costs that will be recovered in relation to the total fees charged by their solicitor, in order to make an informed decision about who they choose to represent them.

The new FRCs will apply to claims where proceedings are issued after 1 October 2023 except in specific circumstances relating to personal injury and disease claims.

The new rules are complex but your solicitor will be on hand to explain how they specifically impact your case prior to proceeding.

If you are considering pursuing a claim for damages, get in touch with our experts at Farleys for an assessment of your case on 0845 287 0939 or contact us by email.